Deepika- The stock has failed to breach its high of 1.80 twice this year.
- Heavy selling dragged the price to new lows of 1.27 dollars.
ARGO blockchain is a big name in the crypto mining industry. It promotes the use of renewable energy sources in the crypto-mining process. This company’s aim is to integrate global finance systems through sustainable energy sources. The company headquarters are located in London, UK, with operations in strategic locations in North America. This firm’s shares are listed on the main market of the London Stock Exchange under the ticker: ARB and on NASDAQ Global Select Market in the United States under the ticker ARBK.
The ARB stock has been highly stable historically. Volumes have usually remained low. It is one of the biggest reasons for the stock to be at such low prices. The stock created a high of $3.20 in February this year. However, there has been a sharp selling followed by a sideways movement up until June, when the stock again shot up to $2.8 levels.
The stock broke its support at 1.47 in the previous week and has been falling since then continuously. Next support may occur within a week at 1.12 if the downward movement continues. As the price reached its high of 2.8 last month, sellers took over the market. Suppose this momentum continues and the price breaches the $1.12 level, one can expect more panic selling leading to a lowered stock value. $1.47 is the next resistance in case of an upside in the stock.
A weak head and shoulder pattern was seen forming with a visible breakdown.
If you closely observe the candles in the above-given chart, you will find a lot of gaps and unusually shaped candles. It occurred due to the poor volumes in the stock, which makes it highly difficult to trade in. Buyers currently seem highly disinterested. Even though the whole market is up, this stock is falling which is another big negative.
These kinds of stocks are more fundamentally based. They move on the basis of news-related events and not based on technicals. A trader should stay away from such stocks because price predictions are never accurate. Besides, low volumes might result in a stuck position.
Conclusion
Negative news related to the company’s earnings led to the stock’s sharp fall. Going by technical indicators, EMA and RSI predict more downside moves and so do most of the other indicators. $1.12 levels can be seen easily. 0.09 dollar levels might also emerge as predicted by the analysts. Both traders and investors should stay away from the stock because it is highly unpredictable and can create a huge trap.
Major technical zones
- Major support levels- 1.12 dollars followed by .98 dollars
- Major resistance levels- 1.47 dollars followed by 1.79 dollars.
